Marginal revenue and marginal cost

Assignment Help Business Economics
Reference no: EM131037775

Rapido, the shoe company, is so popular that it has monopoly power. It's selling 20 million shoes per year, and it's highly profitable. The marginal cost of making extra shoes is quite low, and it doesn't change much if they produce more shoes. Rapido's marketing experts tell the CEO of Rapido that if it decreased prices by 20%, it would sell so many more shoes that profits would rise. If the expert is correct, at its current output, what can you infer about its marginal revenue and marginal cost?

Reference no: EM131037775

Questions Cloud

Contribute to or detract from long-term environmental : Describe at least three ways that information systems can contribute to or detract from long-term environmental (as in natural environment) sustainability.
Research Paper Using the practices of Strategic HRM : Research Paper Using the practices of Strategic HRM, complete a APA research paper. Definition and understanding of HRM and all eight principles: HRM practices include: analyzing and designing work. determining human resource needs (HR planning). att..
Federal reservean independent policymaking : Which of the following contributes to making the Federal Reservean "Independent" policymaking body? a. There are 12 different Federal Reserve banks b. Its role written into the U.S.Constitution c.Members of the Board of Government are appointed fo..
Design the circuit to obtain a voltage gain : D 8.41 The circuit in Fig. 8.15(a) is fabricated in a 0.18-μm CMOS technology for which μnCox = 400 μA/V2, μpCox = 100 μA/V2, Vtn = -Vtp = 0.5 V, V_ An = 5 V/μm, /V / Ap / = 5 V/μm, and VDD = 1.8 V.
Marginal revenue and marginal cost : Rapido's marketing experts tell the CEO of Rapido that if it decreased prices by 20%, it would sell so many more shoes that profits would rise. If the expert is correct, at its current output, what can you infer about its marginal revenue and marg..
Financial crisis between the federal reserve system : Please help with a report comparing RECENT financial crisis between the Federal Reserve System and European Central Bank and how both of them responded to the crisis.
Explain whether or not there is any basis to your client''s : Research relevant tax code and explain whether or not there is any basis to your client's statement. Please be sure to reference the relevant tax code(s) in your discussion and clearly state your position.
Leading producer of carpets : Dalton, Georgia has developed into a leading producer of carpets, despite its small size. What is the reason for Dalton's comparative advantage in carpet production?
Which statement you feel is the most informative for company : At the bottom of one of the income statements you prepare, explain which statement you feel is the most informative for a company? Explain your reasoning.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Describe concepts of prospective also retrospective payment

Which one may under present quality. Describe concepts of prospective also retrospective payment for services.

  Free zone in central bank

What would happen if the Free Zone in central bank lowered the federal funds rate and buy securities on the open market? b-recommends that the central bank sua or lower the federal funds rate? why?

  Project is estimated to require an investment

A project is estimated to require an investment of $25,000, have a life of 5 years and 0 salvage value and have an annual net cash flow that can be described by a symmetric triangular distribution with a = $5,000, and b = $12,000. If the minimum requ..

  Describe the business and its likely main competitors

Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..

  Uses natural gas as fuel for large multi-unit power plant

An electric utility uses natural gas as fuel for a large multi-unit power plant. With all units in-service, for a given hour the plant's fixed cost is $120,000 and its variable cost is $50 per megawatt demanded. What is the hourly demand in megawatts..

  Reduce the price of health care to consumers

One way to encourage people to spend more on preventative health care is to reduce the price of health care to consumers by decreasing the health insurance copayment. At current copayment levels, if the price elasticity of demand for visits to see th..

  Determine the capitalized cost for each design

Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,750,000, has annual operating and maintenance costs of $1,000,000, and requires overhauls every 5 years at a cost of $825,000.

  Contribution in measuring level of development

How does the concept of capabilities to function' help us gain insight into development goals and achievement explain its contribution in measuring level of development.

  In the medical care sector

In the medical care sector, the decisions of what services should be produced, how they should be produced, how they should be distributed, and how to allow for growth and innovation must be made. What combination of non-medical and medical goods and..

  Explain the emergence of an anti-globalization movement

What is globalization (please define it both as a process and outcome)? What factors can you identify in explaining why globalization occurred? How do you assess its impact upon both rich countries and poor ones, in particular, the issue of inequalit..

  Determine by their abilities to benefit-counterbalance

The future of cities in the united states and in other countries will be determine by their abilities to benefit from the _____________ and to minimize or counterbalance the __________________.

  Derive the marginal cost and average cost to characterize

The production function is Q = L^0.25*K^0.25 and the respective unit input prices for L and K are w=4 and r=9. Derive the long-run least cost as a function of Q, and derive the marginal cost and average cost to characterize the shape of the total ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd